Air France-KLM Group and Saudia to reinforce cooperation in the fields of passenger transport and aircraft maintenance

The Air France-KLM Group and Saudia, the flag carrier of Saudi Arabia, today signed a strategic memorandum of understanding (MoU) that lays the foundation for a strengthened cooperation in the fields of passenger transport and aircraft maintenance. The signing took place at the Saudi-French Investment Forum in Riyadh, (Kingdom of Saudi Arabia), in the presence of Emmanuel Macron, President of the French Republic.

Already partners within the SkyTeam alliance, Air France-KLM and Saudia aim to foster stronger ties in order to:

• Improve connectivity between their home markets of France, the Netherlands and Saudi Arabia. Under this agreement, Air France-KLM and Saudia will significantly expand their existing codeshare and interline commercial agreements, thereby providing customers with more travel options between and beyond their respective hubs. The agreement also includes initiatives to optimize operations and improve customer experience, notably through terminal co-location at key airports.
• Enhanced MRO (Maintenance, Repair and Overhaul) cooperation, with Air France Industries KLM Engineering and Maintenance (AFI KLM E&M) being awarded a firm minimum of 50% of the maintenance work on Saudia’s GE90 engines (used on Boeing 777 aircraft), including the localization of the process of module assembly and disassembly for these engines. Saudia will also consider AFI KLM E&M for all future key MRO sourcing processes.

Going forward, Air France Industries KLM Engineering and Maintenance and Saudia Technic will jointly explore the opportunity of establishing a joint venture for GEnx engines (used on Boeing 787 aircraft). The agreement is intended to expand and localize Saudia’s Maintenance, Repair, and Overhaul (MRO) capabilities, in line with Saudia’s ongoing effort to foster local talent and capabilities. The various initiatives listed remain subject to approvals by the relevant authorities.

“Saudia is a historic partner of Air France-KLM. In the context of Saudi Arabia’s fast-paced development, we see a mutual interest in expanding our commercial cooperation and pooling our expertise, notably in the strategic MRO activity. Air France Industries KLM Engineering and Maintenance is already a leader in the field, and further cooperation with Saudia will unlock additional opportunities in the country and in the region.” Benjamin Smith, CEO of Air France-KLM

“This agreement reflects the visionary leadership of the Saudia Group Board, led by its chairman, H.E. Engr. Saleh Al-Jasser, Minister of Transport and Logistics. It aligns with the Saudi Aviation Strategy, spearheaded by the General Authority of Civil Aviation, and demonstrates our commitment to advancing the Kingdom’s aviation sector.” H.E. Engr. Ibrahim Al-Omar, Director General of Saudia Group